After testing the
accumulation territory at 1.5250, the Cable spiked upwards last week. However,
the overall bias remains bearish and it cannot be rendered invalid unless the
distribution territory at 1.5500 is overcome. Until that happens, any rallies
could be taken as mere long squeezes (transitory rallies).
EUR/USD: This pair tested the support line at 1.0900,
and later bounced upwards in the context of a downtrend. Nevertheless, the
overall bias remains bearish and unless the price goes above the resistance
line at 1.1150 (which would require a serious buying pressure), the bias would
remain bearish. The support line at 1.0900 could thus be tested again in case
the selling pressure resumes in earnest. The outlook on the USD is bullish for
the month of November 2015.
USD/CHF: This
pair tested the resistance level at 0.9950, and later got corrected downwards
in the context of an uptrend. Nevertheless, the overall bias remains bullish
and unless the price goes below the support level at 0.9750 (which would require
a serious selling pressure), the bias would remain bullish. The resistance
level at 0.9950 could thus be tested again in case the buying pressure resumes
in earnest.
GBP/USD: After testing the accumulation territory at
1.5250, the Cable spiked upwards last week. However, the overall bias remains
bearish and it cannot be rendered invalid unless the distribution territory at
1.5500 is overcome. Until that happens, any rallies could be taken as mere long
squeezes (transitory rallies).
USD/JPY: Although the current
outlook on this pair is bullish, the price has not made any serious directional
movement so far. What can be seen in the chart is the alternating movements
between the bulls and the bears: The price needs to continue moving upwards,
otherwise, the market could enter another equilibrium phase.
EUR/JPY: This cross first went
south last week and it then moved upwards in the context of a downtrend.
Normally, the cross would be weak as long as the EUR is weak, but this can be
reversed in case the JPY becomes weaker than the EUR. Except in certain cases,
the JPY pairs could rally significantly this month.
Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group
thanks for the analysis.more grease kudos
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